Access to Accessories

July/August 2007

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Drawing on a wealth of experience, Mitchell Thomas Trading develops smoke shop items that sell.

By Jay Lind

When it comes to tobacco retail, Jeff Abel, founder and president of Mitchell Thomas Trading Company, has done it all. He began working in his father’s Memphis, Tennessee smoke shop, Tobacco Corner, Ltd., as a teen. With a comprehensive understanding of the retail business under his belt, Abel then relocated to Chicago to learn warehouse operations and sales working for a national cigar distributor. Next, he moved to Texas for a six-year stint as an independent manufacturer’s representative.

It was while traveling a seven-state region talking to retailers on behalf of companies like Phillips & King International, Savinelli, and Caribe Imported Cigars that the entrepreneurial bug hit. Spotting an opening in the market, Abel began stocking the trunk of his car with eel skin and leather cigarette cases and marketing them to retailers on his route.

“We still sell those cigarette cases well today,” says Abel, whose side business in accessory products became official with the 1998 launch of Carrollton, Texas-based Mitchell Thomas Trading—named in honor of Abel’s brother Mitchell, who died in 1986, and Abel’s father-in-law, Thomas L. Jones, who died in 1987. Today, the company offers an impressive assortment of products in a wide range of accessory categories, from cigarette cases, snuffers, and ashtrays to pipes, pipe stands and cigar cutters.

“We focus on products that are or can become staple items in a smoke shop just as bread, milk, and eggs are staples in a grocery store,” explains Abel, who notes that his firsthand smoke shop experience enables his tobacco accessories company to develop products well suited to its retail customers’ needs. “Because I’ve been in this business so long, I know how to design desirable products that function properly at a reasonable price. I know what will sell, what won’t sell, and what price points to hit—all important factors when cultivating new items, redesigning existing products, and negotiating pricing with overseas vendors.”

Abel personally develops and sells his products, relying on daily interaction with his retail customers for both inspiration and feedback on his products. Rather than focus on trendy “here today, gone tomorrow” items, he seeks products with the potential for longevity. “I listen to retailers’ requests and strive to meet their needs,” he explains. “For example, I spent 18 months developing a cigar tube to accommodate a 64-ring gauge cigar to meet a growing demand. My competitors, however, are still buying and selling the same small ring gauge tubes that have been in the market for years even though they no longer suffice.”

Cigarette cases, ashtrays, snuffers, and lighters are some of the company’s best sellers in outlet stores, says Abel. He notes that most outlets continue to focus on third-tier cigarette sales, devoting the bulk of presentation effort and shelf space in their stores to cigarettes despite the potential for accessories. “Presentation and selection are the most important factors in accessory sales,” he asserts. “Bottom line, in any retail business, you have to carry inventory in order to sell inventory. If a customer walks in the door and sees one cigarette case on the shelf as opposed to a sizeable variety, that customer will likely leave and drive to the nearest competitor in search of a better selection.”

“Many retailers are too cautious when it comes to purchasing and therefore don’t have enough merchandise to make a good presentation,” he adds. “Promotions and specials are a good way to entice the consumer to buy, but even the best offer won’t guarantee a sale if the product display is inadequate.

To maximize the profit potential of accessories, Abel suggests rotating merchandise weekly at the checkout counter to increase impulse sales. He also recommends rearranging displays and adding new merchandise regularly to present a fresh look. To that end, Mitchell Thomas Trading continually introduces new items, this year adding new cigarette cases and cigarette holders, as well as cigar cutters, pipes, and other offerings at the RTDA show.

“We’re always developing new products to add to our line, and we’ve recently began to increase advertising efforts to enhance our name recognition,” says Abel. “We hope to continue our growth in the smoke shop trade, as well as in the gift industry.”

While Abel is the president of Mitchell Thomas Trading and technically the sole employee, his wife Laurie plays a crucial role—one both Abel and she fondly refer to as “slave laborer.” Even the couple’s four Cocker Spaniels, who come to the office every day, get into the act. “Three of our dogs serve as the welcome wagon to all invited guests,” says Abel, “while our fourth—and oldest—barks and growls to ward off unwanted solicitors.” Abel adds that “the boys” provide much needed comic relief during the couple’s long workdays.

In addition to a wide range of quality products, Mitchell Thomas Trading is committed to offering its outlet customers all the support they need to thrive in today’s competitive retail environment. “Given the opportunity, we can offer personal service, product knowledge, display ideas, sales techniques, and quality merchandise at a fair price,” Abel says. “We’re here to help in any way we can.” •

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